OYO founder Ritesh Agarwal tweeted that he has challenged this decision in NCLT
OYO bankruptcy: The Ahmedabad branch of the National Company Law Tribunal (NCLT) has ordered the commencement of corporate insolvency resolution process after defaulting on a payment of Rs 16 lakh by a subsidiary of the hotel company, OYO, Gurgaon.
Subsequently, OYO owner Ritesh Aggarwal told NCLT that the company had entered into an agreement with OYO Hotels & Rooms in 2018. Under this, Oyo Rooms acquired the exclusive license to run the hotel under the brand name.
The complaint against OYO states that between July and November 2019, OYO’s subsidiary Oyo Hotels and Homes Private Limited (OHHPL) defaulted on a payment of Rs 16 lakh. Subsequently, in November 2019, a notice was issued under the Insolvency and Bankruptcy Code.
There is a PDF and text message circulating that claims OYO has filed for bankruptcy. This is absolutely untrue and inaccurate. A claimant is seeking INR 16Lakhs (USD 22k) from OYO's subsidiary leading to a petition at NCLT. 1/3
— Ritesh Agarwal (@riteshagar) April 7, 2021
According to information provided by the company, OYO has informed NCLT that the business of Oyo Hotels and Homes Private Limited (OHHPL) has been transferred to another company MyPerformed Transformation and Hospitality.
OYO issued a statement on Wednesday stating that it is challenging the NCLT’s decision. The company’s founder Ritesh Agarwal tweeted that the company has appealed in the NCLT in this matter.
The company issued a statement saying, “We are surprised to hear that NCLT has accepted the application of insolvency in the case of Rs 16 lakh contractual disputes of OHYPL, a subsidiary of OYO. We have submitted an application in this matter. It The matter is still under court, so we cannot make a statement on it right now. ” Aggarwal has also said that the company has already paid Rs 16 lakh to the owner of the hotel.
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